Planning is the main part of every enterprise till its existence. Each successful company is concentrating on day-to-day reviews of business plans for analyzing the growth in the future (Planning for growth, 2017). For gaining development of the future market, small enterprises need to see their present performance as well as after that they are planning policies and strategies accordingly. Additionally, planning for growth will give a basic structure to achieve balance within work and its activities. Crocus.Co.Uk is a small company as it provides plants through online websites of gardening in the United Kingdom. It is the only one that is able to supply a significant range of plants. In this assignment discussion upon provision for finding out the opportunities of growth within the company will be done. Ansoff's Growth Matrix is very effective for the growth of a company. It will state different sources of funds to ensure the availability of finance for accomplishing enterprise operations.
P1 Major considerations for evaluating the opportunities for growth
Planning for growth is a strategic enterprise function that helps the managers to track as well as plan enterprise performance. It allows organizations to effectively allocate the resources towards changing in external surroundings by the disruption of digital technology along with this it aid to differentiate from rivals. Planning aid small businesses to gain higher numbers of market share as well as raising their revenue within a limited period of time. In this, Crocus.Co.Uk is a small enterprise company that provides gardening services by adopting digital technologies. Hence, the organization is adopting online techniques and tools which make the process of gardening easier. For increasing their margin of profit as well as sales revenue, Crocus.Co.Uk is developed a proper plan which gives guidance to all operations which are useful for the future success and growth of the organization. Planning also assists employees to achieve all practices and operations in the best possible way (Ziari and et. al., 2012). Along with this it also aids in facing future threats and challenges within the market. Some of the different major considerations for growth opportunities are as follows:
Acquiring higher competitive edge is one of most essential component of planning techniques of firms. Crocus.Co.Uk is involved in online business of plants for becoming superior within the market the organisation need to access its rivals. It involve in making of proper policies and strategies which enables firms to beat their competitors. In current scenario of market, various modifications take place which can hinder the enterprise activities and operations. Therefore, at a time of management planning is need to determine its potential as well as current competitors.
Competitors analysis can be accomplished by porter's generic model
This report help in analysis external competitors of the organisation at a time of developing a plan for competitive trends as well as markets. Porters five forces of model was an very effective framework for external analysing. Its purpose is to understand the competitors of the firms properly (Wu, 2015). This theory is used by organisation to establish appropriate position in industry and generate adequate profit from business. It is essential that management of each and every firm formulate adequate tactics and policies to execute operations effectively. Thus, these are various strategies which help Crocus. Co. to construct competitive advantage are defined beneath:
- Cost leadership: This tactic defines that companies provide products at lowest rates to grab attention of large number of people and have large market reach. This strategy is used by firms which have substantial amount of funds, material and manpower to execute activities and deliver appropriate products and services in market. Crocus. Co. is small scale firm which provides gardening items at reasonable prices to attract customers and make them purchase products accordingly.
- Differentiation: This is another strategy which defines that organisation target market has high demand. For this, management require to provide unique and creative products to distinguish from competitors and attract large people. R&D department helps Crocus. Co. to deliver quality plants in market in according to choices and needs of people.
- Cost focus: This strategy is used by firms to target niche market which has less amount of competition. This benefits companies to acknowledge market opportunities and conduct business to deliver appropriate products at reasonable prices. Crocus. Co. provides gardening items which help firm to have good customer base to enhance sales and profitability (Valler, Phelps and Wood, 2012).
- Differentiation focus: This strategy defines that organisation target niche market and deliver unique items and services. This helps management to establish good market image and loyal customers. Crocus. Co. provides different variety of plants at reasonable rates. Along this, quality and various other facilities such as proper guidance and chemicals for plants growth and maintenance is provided to clients. This helps firm sustain its position and goodwill in market.
PEST analysis will be helpful for Crocus Ltd., in respects of identifying all external environmental factors which can affect its business operations in direct and indirect manner. While identifying growth opportunities firm' is needed to consider all these factors and then implement strategies accordingly which ensure its market growth and success.
Under this, firm chosen the cost leadership strategy because the people wants products at reasonable cost. So, it is a responsibility Crocus.Co.Uk to develop the better cost related strategy and provide products of better quality at minimum cost to consumers. With the help of this they will attract towards firm and profit will be enhanced.
P2 Growth opportunity by implementing Ansoff's matrix
In this dynamic environment, each firm wants to radiate and grow within market along with that it is concentrating on implementing advanced strategies or tactics for gaining defensible edge. Crocus.Co.Uk works according to market changes by making impulsive marketing techniques and policies for increasing its set of functional areas (Barbour and Deakin, 2012). For finding out opportunities of growth within external surrounding, it is important for organisation to implement Ansoff growth matrix to control future uncertainties and risks which can hinder the present market position. In this, Crocus.Co.Uk can able to analyse those areas which assist in flourish its activities as well as achieving high competitive edge within a limited period of time. This matrix is also known as market diversification that provide chances to organisation to growth in its existing or new market with present and new goods. The aim behind this is that company can enter into new quadrant for enhancing the areas of market. Some of four components of Ansoff's growth matrix as follows:
- Market penetration: In this, it entails to sell similar goods and services in current market. In order to accomplish this effectively, firms are need to demonstrate various manner which involve in in enhancing buyers loyalty and trust as well. It can also improve by adding up of more features and quality within existing goods (Brinckmann, Grichnik and Kapsa, 2010). Hence to penetrate in its present market Crocus.Co.Uk is having good opportunity as it can apply digitalization in their existing services that aid them in improving working practices and activities. It aid in boosting up of quality goods as well as make more effectual and imperative. Hence, to perform properly in London. Crocus.Co.Uk can use different marketing and promotional campaigns which achieve large groups of customers towards company.
- Market development: This techniques help in entering within a new market by its present offerings so as to increase the areas of market as well as improve the position of market also. It carries out various small enterprise opportunities such as Crocus.Co.Uk in term of increasing its market reputation and brand image within buyers. At a time of comparison with others techniques, it is quite effective and flexible as it concentrate on booming up buyers value. While implementing this techniques, company are need to determine geographical locations or areas from where they will provide their goods. It items are not matched with buyers taste then concept will get failed (Burton, 2010).
- Product development: This block of matrix deals by using various tools and tactics so as to made new goods and re-innovate the previews once. It supports organisation to keep superior as well as victorious within competitive market (Leigh and Blakely, 2016). Crocus.Co.Uk is concentrating on implementing various new modification and techniques its distribution process which help in delivering effective plants to their customers. With this, it also help in increasing enterprise operations scale as well as achieve higher numbers of buyers. In order to made chances in Crocus.Co.Uk services are using latest technologies for making efficient and better services.
- Diversification: This quadrant of this matrix is risky for operating business. In this strategy, company are entering in new markets by their new goods (Pallagst, 2010). It is important for small enterprises to acquire this type of tactics for gaining higher competitive advantages. Before moving to another location company need to analyse customers wants and needs for providing services and goods accordingly. e.g. Crocus.Co.Uk grabbed a contract to give different plants to customers for increasing the demands of plants.
In this model, Crocus.Co.Uk is using the diversification method within their business as they will enhance their business in others areas with more beautiful different plants for attracting more customers. As Crocus.Co.Uk used the diversification strategy but it is more risky for business. But it is helpful in targeting the more markets. Under this, firm enter in to the new market through introducing the new products.
M1 Options for growth using a range of analytical frameworks
There are many different options available to firms to increase growth or productivity at market place. In order to the competitive analysis of business, there are different strategies used though firm such as PESTLE, Porters five forces, Ansoff matrix etc. All are helpful in doing the competitive analysis of business. In context to Crocus.Co. Uk, it uses Porters five forces to determine its market presences, strengths and weaknesses as comparison to its other strong competitors (Martinez and et. al., 2013). With the help of knowing its market position, it can work on that and focus on enhancing growth rate. Competitive analysis provides better opportunities to growth of an organization in an effective or better manner.
P3 Potential sources of funds available for enterprise
Organisation require finance for operating enterprise activities effectively for a long run as if they are not having proper funds then it will be difficult for firm to run their business within marketplace. Some of policies are made by UK government and along with this it appreciated to give finance to small and large enterprises because units of enterprise are operating companies activities at low level which can not survive for a long run due to not having effective finance for accomplishing enterprise activities. Therefore, it is important for entrepreneur to identify best source of funds for their start ups which will aid in running business properly. Some of different sources of finance are as follows:
This is very common way to get funds for business. Government of United Kingdom had develop various banks rules as well as regulations as people who is initially starting a new venture. Entrepreneurship and small firms are taking bank loans at a low level of interest rate for running their work properly (Haughton, Allmendinger and Oosterlynck, 2013). Many others finance institutes who give loans to small enterprises like as firms societies and many more.
- Advantages: It is fix and legal in which firms have to make payments of fixed interest rates to banks and financial institutions. Best merit of bank loans is that provider is having some limitations and it can not sue organisation for making a advance payments.
- Disadvantages: Bank loans is having a fixed interest rate so company can not bargain on that and firms have to pay to bank whether they are in loss or profits in their enterprise. In UK, several kinds of sources of bank loans are their which impact as a loan receiver decision as company can not decide easily which source will be best for them.
This is better option for the companies who are having great networks and have to maintain trust and loyalty before starting business. Crowdfunding increase finance or capital by using online as well as social networks for asking a huge numbers of persons for contributing funds towards the project- products and services, in exchange of equity (MacLeod, 2013). In various cases funds are increased by fundraising websites such as Pozible and OzCroed.
- Advantages: It is an esy way of raising finance with no charges. Investor can evaluate their progress as it will help in stimulating brand by its networks. It became their most loyal customers by the by financing process.
- Disadvantages: Crowdfunding cannot secure companies ideas with patents and copyrights. Company get rewards and returns wrong which mean that they are giving too much to business to investors.
Peer to Peer lending
This is the approach of debt financing that help a specific person to lend and morrow finance without utilizing finance institutes intermediaries. It will also remove the middlemen process but it involve time, risk and effort than the brick and general mortar lending scenario.
- Advantages: It is an fast and easy process of online applications as well as low interest rate is compared with some credit cards and traditional institutions of funds. It is having a fixed interest rate and monthly payment without any hidden charges. They can be individuals with high returns in the range of 12% to 36%.
- Disadvantage: Peer to peer lending cannot available high funds. Companies are having low credits as it will struck high interest rate which will cost in long time. It will help in eliminating same issues such as panic selling (Pothukuchi, 2015).
This method give higher capital risk which is directed towards new and young business with the prospects of fast growth as well as high rate of returns. It investment is not only of funds but also skills and time. This enterprise provide capital for the research and development of an business idea and they give capital for managing layouts.
- Advantages: It is having a primary advantages in an company increasing ability which is not possible through others methods like bank loans.
- Disadvantages: Securing can be a typical process due to accounting and legal company costs must be shoulder.
M2 Potential sources of funding and justification for the adoption of appropriate sources of funding
Under this, there are many different sources of funding used through Crocus.Co. Uk in order to conducting activities and functions of different department in well manner (Li, Mobin and Keyser, 2016). Various sources of funding given below as above:
It is a common way to get money for banks in the form of loan. The government of UK provide funds to small company for run their business. Its main benefit is that small companies can run their business properly. On the other hand high interest rate is main disadvantage.
It consists regarding increasing funds from the public. Its advantage is that it is very time consuming procedure but it has disadvantage that it does not permit to change objectives without the public permission.
P4 Design a business plan for growth
Marketing strategy is the process used by manager of Crocus.Co.Uk comprehend that what they will use to meet targets as well as how it will be performed. Their are conceivable results that there are confounding are find out with enterprise exercise at that point it compelling for development. It is an main instrument for extension of Crocus.Co.Uk.
Crocus.Co.Uk arrange for making a strategy successful is examined as follows:
Crocus.Co.Uk organization was launched in April 2000. It is world's biggest online gardening brand of 2018. they are providing various choices of plants in United Kingdom. In last 15 years they have won 25 gold medals for gardens that they grow and built the plants. They give one of leading gardener designer within the nation.
Mission & Vision
Crocus.Co.Uk have to provide their services in various others location and they generate environment awareness among the peoples as they can tend towards planting and others Eco friendly activities.
In this, organization choose an effective tactics to achieve full information about system capabilities. It is important that finance can be used properly, as small enterprise are having limited amount of finance as well as require to organize activities properly. Analysis of SWOT is proper techniques which is used by Crocus.Co.Uk manager. It will aid in acknowledge competitors working in the sector of digital technology. Hence, market situation as well as system functionality are assess which are as follows: